Shaver Shop shares plummet on FY forecast

Investors have abandoned the Shaver Shop Group after its full-year earnings forecast failed to match expectations.

Shares in the retailer of male and female grooming products crashed by as much as 10 per cent early despite the company projecting earnings higher than last financial year.

Board members said they were happy with trading and forecast full-year sales to be between $211 million and $213 million. This would be greater than the $194.9 million of the 2020 financial year.

Net profit after tax was forecast to be between $16.75 million and $17.5 million. This would be better than the previous $10.6 million profit by the same measure.

However investors wanted more.

Sales and profits have boomed during the pandemic as people spent more time at home.

The same good fortune has fallen on other retailers of home-based goods, such as Wesfarmers’ Bunnings and Super Retail Group’s Supercheap Auto.

Shaver Shop net profit last financial year was up 44.6 per cent.

The growth helped the company share price reach a record high of $1.25 in January.

Investors on Wednesday sent shares as low as 94 cents after the earnings forecast was published.

Shares were lower by 8.26 per cent to $1.00 at 1314 AEST.